Grant v. Phœnix Life Insurance

121 U.S. 105, 7 S. Ct. 841, 30 L. Ed. 905, 1887 U.S. LEXIS 2027
CourtSupreme Court of the United States
DecidedApril 4, 1887
StatusPublished
Cited by51 cases

This text of 121 U.S. 105 (Grant v. Phœnix Life Insurance) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grant v. Phœnix Life Insurance, 121 U.S. 105, 7 S. Ct. 841, 30 L. Ed. 905, 1887 U.S. LEXIS 2027 (1887).

Opinion

Mr.. Justice Blatchfoed,

delivered the opinion of the court.

This is a suit' in equity, brought in the Supreme Court of the ■District of Columbia, on the 17th of April, 1875, by the Phoenix Mutual Life Insurance Company, a Connecticut corporation, against Albert Grant and others, to enforce certain deeds of trust, 26 in number, executed by Grant and his wife to secure sundry smns of money, the plaintiff claiming to be the owner of- all the debts secured by the deeds of trust, which cover various lots in square 760, in the city of Washington.The suit applies to lots 1, 3, 4, 5, 6, 8, 9, 10, 11, 12, 14, 16, 17 and 18, all of which but lots 16, 17 and 18 had buildings on them when the suit was brought. The total amount of principal moneys alleged in the bill to be due on the debts secured by ■ the deeds of trust is $312,658.14. The trustees • in the several deeds of trust, being five different sets of trustees, two in each set, are made parties defendant, as are certain judgment and mechanics’ lien creditors of Grant, and purchasers from him. The bill alleges that Grant is insolvent; that the. property is very much deteriorating for the -want of necessary repairs to the buildings upon it, which Grant is [107]*107unable or unwilling to make; and that 10 of the buildings are unoccupied. The bill prays for the appointment of a receiver to rent and properly care for .12 of the lots; that the ■net amounts collected by the receiver be paid over to the plain-, tiff on account of the indebtedness; that the 14 lots covered by the trust deeds may be sold to pay the indebtedness due to the plaintiff .; and that the proceeds of the sale be paid to the. parties lawfully entitled thereto.

On the 7th of May, 1875, after a hearing, the court made an order appointing a receiver of 10 of the lots, to collect the rents of rented, property, and to lease such as was unrented.

On the 6th of. July, 1875, Grant demurred generally to the' bill. This demurrer was overruled on the 8th of November, 1875, with leave to answer.

On the 27th of November, 1875, Grant filed an answer denying his- indebtedness as to a large part of the amount claimed by the plaintiff, and denying generally the equities of the bill; and with the answer filed four pleas, setting up (1) a want of jurisdiction in the -Court to decree a sale, on the ground that the only lawful authority to make the sale without the consent of Grant was vested in the several trustees; (2) the non-joinder of numerous parties named in the plea; (3) the illegality of the indebtedness claimed, because $9000 of illegal and usurious interest was charged by the plaintiff and paid by Grant on such indebtedness; (4) that all the indebtedness was paid and satisfied before the bringing of the suit.

On the same day, Grant filed a cross-bill, making as defendants the parties to the original bill and those named in the second plea, in which he set up that a contract had been made between him and the plaintiff, on the 1st of March, 1873, by the terms of which, among other things, all of his obligations to the plaintiff were to be surrendered to him in consideration of a deed in fee to be made by him to the plaintiff of 11 of the lots. The cross-bill prayed for a specific performance-of such contract by the plaintiff:

On the 23d of December, 1875, the plaintiff moved to strike out the pleas, and also demurred to the cross-bill. On the 15th of March, 1876, the demurrer to the cross-bill was sustained, [108]*108with leave to amend. On the 20th of March, 1876, the plaintiff filed a general replication, joining issue with Grant. On the 6th of May, 1876, the Court in special term made an order referring the cause to the auditor of the Court to state the account between the plaintiff and Grant, the amount'due under the several deeds of trust, the amounts due to the judgment and -mechanics’ lien creditors referred to in the bill, whether the same are liens upon any of the real estate, the relative priorities of the claims’ of such creditors and the plaintiff, and the value of the real estate. From this order Grant appealed to the’ General Tenn. On the hearing before the auditor he refused to receive evidence on the part of Grant in support of any of the defences raised by his answer.

On the 19th of June, 1876, the auditor filed his report, in which he reported upon the several matters referred to him, and found the amount due on the several ’deeds-of trust on the real estate the sale of which the bill prayed for, to be $425,848.83, including interest, and stated the value of the fourteen lots and of the buildings upon them to be $200,425. Grant filed excejitions to this report, and on the 11th of December, 1876, the court made a decree overruling the exceptions and confirming the report. The decree directed that the fourteen lots be sold by trustees named in the decree, un less ’ Grant should, by a day specified, pay into court for the plaintiff the sum of $407,117.58. In case of a sale, the proceeds were to be brought into coiirt to abide further order. Grant-appealed to the General Term from this decree.

On the' 28th of March, 1877, a decree was made by the General Term, reversing the decree of the Special Term of December 11, 1876, setting aside the order of reference to the auditor and the proceedings thereunder, and remanding the cause to the Special Term for further proceedings, to commence with the cause as it stood after the filing of the replication and when application for the reference to the auditor was made, with leave to Grant to move to amend his cross-bill and to the plaintiff to apply for such order as -it might be. advised in regard to its replication. The decision of -the General Term, reported in 3 MacArthur, 42, considers the -objection [109]*109raised to the jurisdiction of the court .to decree a sale, on the. ground that by the trust deeds the sales were to be made by ■' the trustees, and overrules it. It says: “The .present case contains many particular features which seem to render the jurisdiction of the court absolutely indispensable in order that a fair sale should be made, and bidders should know beforehand that they could get a valid title under a decree in which the rights of every person having a claim upon the property had been ascertained and settled. From the face of the bill it appears that the property in question has been subdivided into numerous lots. Some of the deeds of trust are liens upon all the lots; others upon some of them only. • Payments have been made on account of some of the claims, and none upon others. The aggregate liens exceed the value of the property, and the owner is apparently insolvent. Purchasers from Grant subsequent to the liens áre parties to the bill, and in justice to them the securities should be marshalled. The parties in interest are numerous, and the complication of rights is so great that nothing, can settle them except a decree in equity.” It goes on to' hold that the order of reference to the auditor was erroneous in the then condition of the cause, and that the issues raised by Grant ought to have been first tried in the usual way.

On the 21st of May, 1877, by leave of the court in Special Term, Grant filed amendments to his cross-bill.

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Bluebook (online)
121 U.S. 105, 7 S. Ct. 841, 30 L. Ed. 905, 1887 U.S. LEXIS 2027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grant-v-phnix-life-insurance-scotus-1887.